The Michigan Supreme Court recently delivered a significant ruling on a minimum wage increase that will have a direct impact on workers’ wages across the state. In a 4-3 decision announced on Wednesday, the court determined that the State Legislature acted unconstitutionally when it blocked a pair of ballot initiatives related to Michigan’s minimum wage laws back in 2018.

 

As a result of this ruling, Michigan workers can now look forward to a pay raise in the near future. The court’s decision effectively overrides the legislature’s previous actions, paving the way for the implementation of the blocked initiatives.

The Republican-controlled Legislature initially endorsed two voter-initiated measures prior to the election. However, in a subsequent legislative session, they diluted the impact of these policies.

1. Key Details of the Michigan Supreme Court Ruling on Minimum Wage:

In a significant ruling, the Michigan Supreme Court declared that the state legislature unconstitutionally undermined voter-approved initiatives regarding minimum wage and earned sick time

Justice Elizabeth Welch, authoring the majority opinion on Wednesday, stated that by passing the Wage Act and Earned Sick Time Act, and subsequently stripping them of key provisions within the same legislative session, the legislature infringed on the people’s right to initiate laws. As a result, the court deemed the amended versions of both acts unconstitutional.

“In sum, by adopting the Wage Act and the Earned Sick Time Act and then later stripping those acts of their key features in the same legislative session, the Legislature unconstitutionally violated the people’s initiative rights,” Justice Elizabeth Welch

I. Employee Benefits of Michigan Minimum Wage Ruling:

  • Employees can expect an increase in their hourly minimum wage.
  • The new ruling also mandates increased levels of paid sick leave.

II. Timeline for Implementation of New Minimum Wage In Michigan:

The Supreme Court’s ruling will bring the original minimum wage and paid leave proposals into effect starting February 21st. These citizen-initiated proposals establish an initial minimum wage of $10 per hour, with subsequent increases scheduled for implementation at later dates.

2. How Much Will Michigan’s Minimum Wage Increase After the Court Ruling?

Due to the Supreme Court’s decision, Michigan’s current minimum wage of $10.33 per hour will receive a substantial hike. Effective February 21st, the minimum wage will increase by at least $2 per hour. This is because the justices incorporated an inflationary adjustment into the original $10 rate. The state treasurer will calculate the exact amount of this adjustment, as reported by The Detroit News.

The upward graph of Michigan’s minimum wage will continue over the next three years. After this period, the minimum wage will be indexed to inflation. According to The Detroit News, Michigan’s minimum wage is projected to reach approximately $15 per hour by the year 2028.

3. Implications of the Minimum Wage Ruling for Tipped Workers:

The tipped minimum wage is set to increase as well. Next year, it will rise to 48% of the standard minimum wage, which is projected to be around $6 per hour. Currently, the tipped minimum wage stands at $3.93 per hour.

Following the voter initiative and the recent court ruling, the tipped minimum wage will gradually move to 100% of the regular minimum wage over five years following 2025. This timeline represents a shift from the original plan, which aimed to achieve this parity between 2019 and 2024.

4. Michigan Workers to Benefit from Wage Increases and Paid Sick Leave:

Saru Jayaraman, president of One Fair Wage, hailed Wednesday as “a great day for more than 494,000 workers in Michigan who are getting a raise.”

In addition to the wage increase, the new sick leave policy will significantly benefit Michigan workers. Under this policy, businesses must provide earned sick time to employees at a rate of one hour of paid sick time for every 30 hours worked. This time can be used for various reasons, including mental or physical illness, medical appointments, or attending school meetings related to a child’s health.

5. Limitations for Small Businesses Due to the Wage Increase:

However, there are limitations for smaller businesses. Companies with fewer than nine employees in a week can cap paid sick time usage at 40 hours per year unless the employer chooses to offer more, as reported by The News.

Final Thoughts on New Minimum Wage in Michigan:

The Michigan Supreme Court’s ruling on minimum wage is a significant win for workers in the state. With substantial increases in the minimum wage and the implementation of paid sick leave, Michigan is taking steps towards a more equitable and worker-friendly environment. This decision not only stabilizes the financial well-being of countless workers but also sets a positive precedent for labor rights across the nation.

For more news and updates stay tuned at MITECHNEWS.

 

FAQs

1. What is the current minimum wage in Michigan?

The current minimum wage in Michigan is $10.33 per hour.

2. What is the new paid sick leave law in Michigan?

Michigan’s new paid sick leave law requires businesses to provide one hour of paid sick time for every 30 hours worked. Employees can use this time for various reasons, including illness, medical appointments, and child care.

3. How many workers in Michigan will benefit from the minimum wage increase after the Supreme Court ruling?

Over 494,000 Michigan workers are expected to benefit from the minimum wage increase. This includes employees in various industries, such as retail, food service, and hospitality.

4. How much will the tipped minimum wage increase in Michigan?

The tipped minimum wage in Michigan will increase to 48% of the traditional minimum wage in the next year, which is expected to be around $6 per hour.